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Started By
Message
HOA doing shady stuff - lawsuit ongoing
Posted on 3/29/23 at 4:11 pm
Posted on 3/29/23 at 4:11 pm
Let me preface this by acknowledging that obviously no one has a copy of the contract I signed, so I realize advice is probably limited. I’m just basically venting and hoping someone might have helpful knowledge for me.
So we purchased a home within a small HOA shortly after Covid (summer of 2020). Didn’t really want to be part of a HOA, but options were limited at that time, and we didn’t really have any other choice.
Little did we know when we purchased (they didn’t disclose to us), they were embattled in a multi-year lawsuit with a homeowner over potted plants. Yep that’s right. They fined a guy $25 over potted plants, he didn’t pay, they sued him, then he turned around and counter sued the HOA.
Not sure how much in legal fees were taken out of the HOA’s reserve fund before we purchased, but apparently it got costly and they went through it pretty quickly because the board really wanted to pursue this lawsuit and go after this guy.
So fast forward to 2021 and I had to pay a $1,000 assessment for legal fees for this ongoing lawsuit that was heading to appeals. I just paid it, and was told I’d receive it back as credit for dues once we win this appeal. Fast-forward to 2023 and we lost the appeal, and now I’m told I’ll owe another $3,000 in legal fees to pay for the remainder of our attorneys + the plant guy’s attorneys.
Hiring an attorney to fight something minor probably isn’t worth it, so that’s why I’m seeing if anyone on here has any similar experiences.
They’ve done other shady stuff like raising the HOA fees (35%) and then demanding we pay that extra amount on previously paid dues before they voted to increase.
Sorry, I know this is a long post and now I’m rambling, but it’s just frustrating. We love where we live, but it’s just not being managed correctly, and I don’t have the time to run for the board.
So we purchased a home within a small HOA shortly after Covid (summer of 2020). Didn’t really want to be part of a HOA, but options were limited at that time, and we didn’t really have any other choice.
Little did we know when we purchased (they didn’t disclose to us), they were embattled in a multi-year lawsuit with a homeowner over potted plants. Yep that’s right. They fined a guy $25 over potted plants, he didn’t pay, they sued him, then he turned around and counter sued the HOA.
Not sure how much in legal fees were taken out of the HOA’s reserve fund before we purchased, but apparently it got costly and they went through it pretty quickly because the board really wanted to pursue this lawsuit and go after this guy.
So fast forward to 2021 and I had to pay a $1,000 assessment for legal fees for this ongoing lawsuit that was heading to appeals. I just paid it, and was told I’d receive it back as credit for dues once we win this appeal. Fast-forward to 2023 and we lost the appeal, and now I’m told I’ll owe another $3,000 in legal fees to pay for the remainder of our attorneys + the plant guy’s attorneys.
Hiring an attorney to fight something minor probably isn’t worth it, so that’s why I’m seeing if anyone on here has any similar experiences.
They’ve done other shady stuff like raising the HOA fees (35%) and then demanding we pay that extra amount on previously paid dues before they voted to increase.
Sorry, I know this is a long post and now I’m rambling, but it’s just frustrating. We love where we live, but it’s just not being managed correctly, and I don’t have the time to run for the board.
24
Posted on 3/29/23 at 4:21 pm to UFownstSECsince1950
Don't pay the HOA shite. They obviously are morons and don't have the money left to sue you.
Posted on 3/29/23 at 4:28 pm to UFownstSECsince1950
Who the f sues over a $25 fine and then f ing appeals it
That is gross negligence
That is gross negligence
Posted on 3/29/23 at 4:34 pm to thelawnwranglers
No, I think the HOA actually won the original lawsuit. Then plant guy turned around and sued the HOA. They had to hire more attorneys to defend themselves, and then at some point it went to appeals where the HOA ultimately lost.
Not really sure all that happened since it’s taken so many years. I’m just upset they didn’t inform us before we purchased.
Not really sure all that happened since it’s taken so many years. I’m just upset they didn’t inform us before we purchased.
This post was edited on 3/29/23 at 4:36 pm
Posted on 3/29/23 at 4:47 pm to UFownstSECsince1950
I can't help you but it sounds like you have a bunch of arrogant neighbors
Posted on 3/29/23 at 4:47 pm to UFownstSECsince1950
Usually i would say its subject to whatever your bylaws are regarding lawsuits.
Our HOA was considering a lawsuit against a non-HOA party. While the board can recommend action, to proceed forward with an actual suit, it needed to be voted on by the members of the HOA. Presumably this wasn't a unilateral decision?
But since your suit was already in progess I would be surprised if you are not subject to whatever the previous members presumably voted for and therefore the financial repercussions of losing the suit, since you are now part of the HOA.
I guess the bigger question is if the suit wasn't disclosed in the buying process, do you have any recourse(against the HOA, against your closing attorney, etc.)? I guess that's where a lawyers advice regarding this situation would be helpful. But I'm not sure if legal fees to get the answer to this would be worth trying to get out of the $3-4k.
If all of this was indeed a unilateral decision by the board, then yall probably need to change to bylaws.
EtA: you can argue not to pay as it seems like they have no money to pursue recourse. But I guess thay also depends on what the Financials of your HOA are, what other services they provide and if they will continue to provide if they have no money. If the HOA dissolves, who pays for the fees then. Can they put a lean on your house etc? Or.you can just not pay and sell your house and not worry about it.
Our HOA was considering a lawsuit against a non-HOA party. While the board can recommend action, to proceed forward with an actual suit, it needed to be voted on by the members of the HOA. Presumably this wasn't a unilateral decision?
But since your suit was already in progess I would be surprised if you are not subject to whatever the previous members presumably voted for and therefore the financial repercussions of losing the suit, since you are now part of the HOA.
I guess the bigger question is if the suit wasn't disclosed in the buying process, do you have any recourse(against the HOA, against your closing attorney, etc.)? I guess that's where a lawyers advice regarding this situation would be helpful. But I'm not sure if legal fees to get the answer to this would be worth trying to get out of the $3-4k.
If all of this was indeed a unilateral decision by the board, then yall probably need to change to bylaws.
EtA: you can argue not to pay as it seems like they have no money to pursue recourse. But I guess thay also depends on what the Financials of your HOA are, what other services they provide and if they will continue to provide if they have no money. If the HOA dissolves, who pays for the fees then. Can they put a lean on your house etc? Or.you can just not pay and sell your house and not worry about it.
This post was edited on 3/29/23 at 4:51 pm
Posted on 3/29/23 at 4:58 pm to UFownstSECsince1950
This is why my HOA resorts to shaming in lieu of lawsuits. They tried a lawsuit once, and got burned in a similar manner.
Posted on 3/29/23 at 5:00 pm to UFownstSECsince1950
quote:
I’m just upset they didn’t inform us before we purchased
Sorta sounds like someone violated a real estate disclosure requirement. Family member had an HOA issue, and refused to pay. Because they informed them AFTER the closing, of the pending expense. The HOA had no paperwork to show where they informed the realtor of the pending increase
Eventually the HOA dropped the issue, but the family was so soured on the ineptitude of HOA leadership that they moved to a non HOA neighborhood after 2 years
Posted on 3/29/23 at 5:06 pm to UFownstSECsince1950
$25? wtf? There has to be more to this story
Posted on 3/29/23 at 5:18 pm to thelawnwranglers
quote:
Who the f sues over a $25 fine and then f ing appeals it
Who? The ego driven Karens and Darrins who typically seek power in HOAs.
My fiancée’s daughter manages HOA communities and the stories she tells me meet or exceed what’s in the OP.
Posted on 3/29/23 at 5:20 pm to cable
Not sure what state you’re in but you should have had 3 days to review all HOA docs, by laws etc etc. It’s an out to a contract here in VA. (Called a resale packet).
Not an attorney but might be worth back tracking a bit if that was not disclosed to you but should have. You MIGHT have some recourse against the HOA, the seller and/or realtor if they all knowingly hid it.
Again, not an attorney and every state is different. Virginia you would have never closed without this knowledge of the lawsuit unless you just breezed right through the HOA resale package.
Not an attorney but might be worth back tracking a bit if that was not disclosed to you but should have. You MIGHT have some recourse against the HOA, the seller and/or realtor if they all knowingly hid it.
Again, not an attorney and every state is different. Virginia you would have never closed without this knowledge of the lawsuit unless you just breezed right through the HOA resale package.
Posted on 3/29/23 at 9:02 pm to UFownstSECsince1950
Without the state, a link to the appeal, or the contract with the hoa, you're wasting everybody's fricking time.
Posted on 3/29/23 at 11:54 pm to UFownstSECsince1950
Read the by-laws line by line. Decent chance that the people in charge of the HOA don't have a clue what they're doing.
Posted on 3/29/23 at 11:55 pm to UFownstSECsince1950
In almost 3 years, the neighborhood still hasn’t voted these ridiculous HOA board members out yet?
Posted on 3/30/23 at 5:47 am to UFownstSECsince1950
I hate HOAs, and am currently president of mine.
We are dealing with an idiot as well, and he is threatening to sue the neighborhood he lives in.
We are dealing with an idiot as well, and he is threatening to sue the neighborhood he lives in.
Posted on 3/30/23 at 5:53 am to UFownstSECsince1950
quote:No you didn't
So fast forward to 2021 and I had to pay a $1,000 assessment for legal fees for this ongoing lawsuit
quote:
I just paid it
Posted on 3/30/23 at 7:27 am to cable
quote:
$25? wtf? There has to be more to this story
I obviously don't know all the ins and outs of OP's story but in my experience this whole thing isn't JUTS because of potted plants or a $25 fine. It's becuase of continued nonpayment. What likely happened was:
-dude has plants that are not allowed per the association covenants. You can argue whether the covenants are dumb as shite or not, but those ar ethe rules and he borke them
-Dude would hve received a letter saying "hey, your plants aren't in compliance. Plesae remove them within 30 days"
-Month goes by dude still has plants so he gets a $25 fine.
-Another month goes by and he hasn't changed the palnts or paid his fine, so now he gets a late fee
-Another month and still refusal to pay so now he gets another late fee
-Eventaully, with continued non-pyamnet, a lien can be placed on his property
-Eventually after the lien, with continued nonpayment, it's turned over to a collection attorney
That is how many companies work in my experience. What would happen if you refused to pay your credit card bill? Or your power bill? Or your car note? This isn't jsut abotu "$25 plants" it's (I'm assuming) about this homeonwer flatly and staunchly refusing to abide by teh covenants that he agreed to when he purcyhased a home in an HOA.
Posted on 3/30/23 at 7:40 am to UFownstSECsince1950
quote:
it got costly and they went through it pretty quickly because the board really wanted to pursue this lawsuit and go after this guy.
spomeone else mentioned it but how have these people not been voted out yet? Do they have 3 year terms? The Board has a duty/obligation to not frick up the funds since they belong to everyone but it sounds like they have some personal vendetta.
quote:
fast forward to 2021 and I had to pay a $1,000 assessment for legal fees
The only thing you HAVE to pay is your annual assessment, and anythign else that is disclosed in yoru governing docs (like an amenity fee, or a transfer fee at closing, etc). That $1K was likely a special assessment which has to be voted on and approved. The 3 or 5 board members can't jsut say "oh btw everyone now owes an extra thousand dollars".
quote:
Fast-forward to 2023 and we lost the appeal
Association governing docs are binding legal documents. Just abotu any attorney worth a shite is going to win an open and shut case as it relates to covenant enforcement and financial collection as long as everythign was done according to teh CCRs. The fact that y'all lost tells me that the Board is just utterly clueless and have it out for this one guy and are basically making things up as they go and have no real basis for anything.
I would suggest getting a copy of yoru CCRs (specifically bylaws) TODAY and looking through them since there shoudl be a section on board member removal. In many cases the community at large can call for a special meeting and with enough votes can vote out a board member. This sounds liek the exact kind of situation somethign like that was designed for. These people sound like morons.
quote:
We love where we live, but it’s just not being managed correctly, and I don’t have the time to run for the board.
do yall employ a management company? Just liek any industry there will be some dogshit ones and some stellar ones, but they exist to take most of these duties AWAY from the homeonwre board members to avoid situations just like this.
Posted on 3/30/23 at 8:03 am to UFownstSECsince1950
There goes the neighborhood!
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